Section 31March 10, 1990, Sec./Art. 31

Termination of Membership.- (1) A member of a cooperative may, for any reason, withdraw his membership from the cooperative by giving a sixty (60) day notice to the board of directors. The withdrawing member shall be entitled to a refund of his share capital contribution and all other interests in the cooperative: Provided, That such refund shall not be made if upon such payment the value of the assets of the cooperative would be less than the aggregate amount of its debts and liabilities exclusive of his share capital contribution.

(2) The death, insanity, insolvency or dissolution of a member shall be considered an automatic termination of membership.

(3) A member may be terminated by a vote of the majority of all the members of the board of directors for any of the following causes:

(a) When a member has not patronized the services of the cooperative for an unreasonable period of time as may be fixed by the board of directors;

(b) When a member has continuously failed to comply with his obligations;

(c) When a member has acted in violation of the by-laws and the rules of the cooperative; and

(d) For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative.

A member whose membership the board of directors may wish to terminate shall be informed of such intended action in writing and shall be given an opportunity to be heard before the said board makes its decision. The decision of the board shall be in writing and shall be communicated in person or by registered mail to the member and shall be appealable, within thirty (30) days after the decision is promulgated to the general assembly whose decision therein, whether in a general or special session, shall be final. Pending a decision by the general assembly, the membership remains in force.